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When touring open houses, watch for signs of larger issues with the property. Jenna Dougherty and Greta Eoff of the DeMasi Group at Keller Williams Realty in Davis, Calif., shared items that should raise alarms for potential buyers.

Overpowering scent. Don’t be too heavy-handed with scented candles or other fragrances, it could be a signal to buyers that you are trying to cover up the source of more serious odors, such as a musty smell from mold, pets, or something else.

Poor tiling. If there are gaps in the tiles or if the tiles are slightly uneven, it may indicate a poor DIY remodeling project that doesn’t meet professional standards.

Major cracks. Most homes have a few hairline cracks, but watch out for large cracks. Check for doors and windows that stick or cracks above window frames, which may indicate a larger foundation issue

Mold. Open the cabinets around bathroom and kitchen sinks and look around the drains for any mold. Even small black or gray spots may indicate a more serious issue. Mold can signal water damage or improper ventilation in the home.

Mortgage rates increased again for the week ending Feb. 1, continuing their upward trend, according to the Primary Mortgage Market Survey released by Freddie Mac.

The 30-year fixed-rate mortgage averaged 4.22%, with an average 0.5 point, up from the previous 4.15% average. The average rate also increased on a year-over-year basis from the 4.19% average in the same week in 2017.

The average rate for the 15-year fixed-rate mortgage was 3.68%, with an average 0.5 point. The average increased from the 3.62% average in the previous week as well as the 3.41% average in the same period last year.

Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.53%, with an average 0.4 point. In the prior period, it averaged 3.52%. A year ago at this time, the 5-year ARM averaged 3.23%.

“The Federal Reserve did not hike rates this week, but the market views future hikes as a near certainty,” Freddie Mac Deputy Chief Economist Len Kiefer said. “The expectation of future Fed rate hikes and increased borrowing by the US Treasury is putting upward pressure on interest rates. The 30-year fixed-rate mortgage is up over a quarter of a percentage point (27 basis points) from the first week of the year. 30-year fixed mortgage rates have increased for four consecutive weeks and are now slightly above where they were last year at this time.”

Rates on home loans moved upwards again in the past week. For the week ending January 25, Freddie Mac announced that 30-year fixed rates increased to 4.15% from 4.04% the week before. The average for 15-year loans rose to 3.62% and the average for five-year adjustables climbed to 3.52%. A year ago, 30-year fixed rates averaged 4.19%, slightly higher than today’s level. Attributed to Len Kiefer, Deputy Chief Economist, Freddie Mac — “Rates keep climbing. The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Rates on home loans, in turn, followed the surge in Treasury yields. The 30-year fixed rate jumped 11 basis points to 4.15 percent, its highest level since March of last year.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes. (With permission from Origination Pro)

Rates rose in the past week, with 30-year fixed rates moving close to the 4.00% level. For the week ending December 28, Freddie Mac announced that 30-year fixed rates rose 3.99% from 3.94% the week before. The average for 15-year loans increased to 3.44%. BUT LOOK AT ABBA FIRST MORTGAGE INTEREST RATES! Our rates are amongst the lowest offered in the country for fixed rate mortgages. Without going through each one individually, please go to our RATES page as you can link to it just above this news page. About other rates- the average for five-year adjustables rose to 3.47%. A year ago, 30-year fixed rates averaged 4.32%, more than 0.25% higher than today. Attributed to Sean Becketti, chief economist, Freddie Mac — “As we expected, rates on home loans felt the effect of last week’s surge in long-term interest rates in the final, shortened week of 2017. The 30-year fixed rate increased 5 basis points to 3.99 percent in this week’s survey. Although this week’s survey rate represents a five-month high, 30-year fixed rates are still below the levels we saw at the end of last year and the early part of 2017. Rates on home loans have remained relatively low all year.”

It is the first of the year and we have been inundated with projections regarding the economy, interest rates, real estate and more. It is always hard to predict the future and this year is going to be even harder to predict because of a new variable — the tax law. As we have mentioned previously, the lowering of tax rates is likely to stimulate an already strengthening economy. This should be good news for jobs, retailers and more. The question remains how strong will the economy get and what will the effects be on interest rates, oil prices — and ultimately inflation. We have already seen rates and oil prices creeping up in anticipation of the action. When we move to real estate, the prediction game gets even harder. Economists were already predicting continued inventory shortages, more new homes coming on-line and moderating price increases. But the change in the standard and mortgage deductions will certainly have to be factored into the equation. The doubling of the standard deduction means that those purchasing on the lower end of the scale are more likely to not take advantage of the deduction of interest on home loans. Likewise, those who own higher priced homes are less likely to make a move because they would lose part of their present deduction.
Here is the good news. There are four solid economic reasons to own a home and the tax deduction is only one of these four. The home will still serve as a leveraged investment, a forced savings plan and protection against inflation. As a matter of fact, we feel the tax law’s effect upon interest rates may be a more important factor in determining the direction of the real estate markets than the tweaks made in the deductions. In this regard, those who feel that rates will ultimately rise because of the economic effects of the law may very well be inclined to purchase now rather than later.

Rates were stable in the past week, despite the Fed’s move to increase short-term rates. For the week ending December 14, Freddie Mac announced that 30-year fixed rates fell one tick to 3.93% from 3.94% the week before. The average for 15-year loans remained at 3.36%. The average for five-year adjustables rose one tick to 3.36%. A year ago, 30-year fixed rates averaged 4.16%, almost 0.25% higher than today. Attributed to Sean Becketti, chief economist, Freddie Mac –“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017. The market had already priced in the rate hike, so long-term interest rates, including rates on home loans, hardly moved. Mortgage rates held relatively flat across the board, with the 30-year fixed rate inching down 1 basis point to 3.93 percent in this week’s survey. Rates on home loans have been in a holding pattern for the fourth quarter, remaining within a 10-basis point range since October.”

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Federal Reserve Chair Janet Yellen announced that she plans to resign from the Fed Board of Governors. Previously, Department of the Treasury Secretary Steven Mnuchin mentioned Yellen was still unsure whether she would serve out the remainder of her time on the Board of Governors after stepping down as Fed Chair. Now, Yellen, who was appointed to the Board by former President Barack Obama to serve until January 21, 2024, announced she will resign upon the swearing in of her successor as Chair. “It has been my great privilege and honor to serve in the Federal Reserve System over the course of three eventful decades – as a member of the Board of Governors, as President of the Federal Reserve Bank of San Francisco, and, most especially, as Vice Chair and Chair of the Board,” Yellen wrote in her resignation letter. President Trump recently tapped Federal Reserve Governor Jerome Powell to serve as the next Fed chair. Powell is now in the confirmation process. Yellen’s term as Chair ends on February 3, 2018. She also serves as Chair of the Federal Open Market Committee. It is unclear what this turn of events will mean for the federal funds rate in 2018. Capital Economics recently released its prediction, saying next year’s change in Fed Chair won’t matter, rates will still be raised four times. Source: HousingWire

Rates were stable in the past week, despite the Fed’s move to increase short-term rates. For the week ending December 14, Freddie Mac announced that 30-year fixed rates fell one tick to 3.93% from 3.94% the week before. The average for 15-year loans remained at 3.36%. The average for five-year adjustables rose one tick to 3.36%. A year ago, 30-year fixed rates averaged 4.16%, almost 0.25% higher than today. Attributed to Sean Becketti, chief economist, Freddie Mac –“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017. The market had already priced in the rate hike, thus long-term interest rates, including rates on home loans, hardly moved. Mortgage rates held relatively flat across the board, with the 30-year fixed rate inching down 1 basis point to 3.93 percent in this week’s survey. Rates on home loans have been in a holding pattern for the fourth quarter, remaining within a 10-basis point range since October.”Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

On December 18th and today, December 19th, the market has deteriorated and rates have begun to spike up. This may be in anticipation of the holidays and the next rate hike that the Feds have already planned for next year in 2018. Please consider your refinancing or your purchasing NOW before rates go up further and you find that your dollar doesn’t go nearly as far as it once did when rates were lower. Call us today at 910-332-0650 and ask for Richie Biagini to discuss your mortgage needs that will be most beneficial for you and your needs.

Rates were up in the past week. For the week ending December 7, Freddie Mac announced that 30-year fixed rates rose to 3.94% from 3.90% the week before. The average for 15-year loans increased to 3.36%. The average for five-year adjustables rose to 3.35%. A year ago, 30-year fixed rates averaged 4.13%, higher than today. Attributed to Sean Becketti, chief economist, Freddie Mac –“This week’s survey reflects last week’s uptick in long-term interest rates, with 30-year fixed rate loans up 4 basis points to 3.94 percent. The 30-year rate has been bouncing around in a 10-basis point range since September.”

Today, Janet Yellen will announce whether the Federal Reserve will raise rates this month by .25%. This affects all short term lending and bank to bank lending. It affects the Prime Rate which is what borrowers will have to pay back when obtaining short term (credit cards, auto loans, etc) financing.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

A news agency has reported that the new acting head of the Consumer Financial Protection Bureau was reviewing whether to levy a potential penalty against Wells Fargo for mortgage misdeeds – but President Donald Trump insists the banking giant will pay.

Wells Fargo got in hot water earlier this year over revelations that it had charged borrowers improper rate-lock fees – just one of a seemingly endless parade of scandals for the bank over the last year. More than 100,000 borrowers paid the questionable fees between September of 2013 and February of 2017. The bank has said it would be refunding those fees over the next few months.

News agency Reuters, citing sources familiar with the matter, reported that the CFPB had been investigating this issue and had set settlement terms that could have seen the bank paying a penalty of tens of millions of dollars. Former CFPB Director Richard Cordray approved the settlement before stepping down last month, the sources said.

But Acting CFPB Director Mick Mulvaney, who was a vocal critic of the agency before taking its reins, has pledged to re-examine the agency’s ongoing enforcement work – which sources said includes any potential sanctions against Wells Fargo.

But President Donald Trump said Friday that the bank will pay.

“Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has been incorrectly reported, but will be pursued and, if anything, substantially increased,” Trump tweeted. “I will cut Regs but make penalties severe when caught cheating!”

Trump does not have the authority to levy penalties or increase existing monetary fines.